You may have heard a time or two, that starting a new business can be challenging. But why? What makes starting a business so difficult? What are the biggest threats to a start-up?
Perhaps the biggest threat to a new business is not having access to sufficient funding. You may have a great concept and a good business plan, but if you lack the cash to keep it running to a point where it takes hold, the rest may be pointless. Make sure you have enough cash or financing to keep you afloat for at least two years.
Lack of Sales/Marketing Expertise
Most new companies have products or services that need to be sold. This can be done one-on-one or through marketing and advertising. How will potential customers learn about your company and its products or services? Lack of knowledge and expertise in this area poses a big threat to start-ups.
The odds are you are competing with others for similar customers. You must be able to compete on quality of products, excellence of service, and, of course, pricing. If you have weak competitors in your business space, it can make it easier. Make sure you understand who you are competing against and learn their strengths and weaknesses.
One of the biggest factors contributing to the failure of businesses is theft. This includes outside and employee theft. You can put security systems and policies in place, but one of the best ways to protect your business from this issue is by acquiring business insurance.
A good business insurance plan can not only help protect your business against theft but also vandalism, storm damage, loss of income, liability claims, and more. When your new business is protected by business insurance, you can have more confidence and sleep better.
There are significant threats to any business. Business insurance can help provide protection. Contact one of our independent business insurance agents for a business insurance evaluation and price quote. There’s no cost or obligation, and you may discover business insurance is more affordable than you realize.